Brocade Networks is Reportedly Entertaining Bids for Buyout
January 10, 2012
Brocade Communications Systems, which has tried to get bought at least twice before, is entertaining bids according to Reuters, which explains why its stock was up 8% Monday.
The wire service heard from nameless knowledgeable sources that Brocade has gotten "first-round bids from a handful of potential buyers."
The switch maker has reportedly had Qatalyst Partners out looking for a leveraged buyout and Qatalyst is famous for bringing home juicy deals. However, Brocade is apparently no easy sell. According to Bloomberg Qatalyst has been looking for two years. Meanwhile, Dell bought Force 10 and HP bought 3Com. Reuters says Qatalyst was brought back in in November…
Brocade has reportedly talked to Silver Lake, TPG, KKR, Blackstone, Bain and Warburg Pincus. Elliot Associates, instrumental in Novell going private, owns about 10% of Brocade and has been held out as a possible buyer.
Brocade’s market cap is around $2.67 billion.